This study was conceived on the basis ofa request by Ukraine’s Ministry of Agricultural Policies andFood (MoAPF). In 2013, the MoAPF explored the World Bank’sinterest for investing in grain hoppers, following a deficitof hoppers and concerns about related difficulties for graintransport. In response, the World Bank secured resourcesfrom the Multi Donor Trust Fund for Trade and Development(TF016693) to carry out a review of grain logistics inUkraine in order to better understand the challenges facingthe sector. The objectives of this report are to assess thefunctioning of the grain logistics system, identifybottlenecks and put forward practical recommendations forinvestments and reform. Research points to five key driversof current high logistics costs: (i) lack of regulatoryclarity and sub-optimal management of public assets thatcreate barriers to private investments; (ii)underutilization of river transport, (iii) underinvestmentin rail transport; (iv) inefficiencies in storagemanagement, and (v) excessive use of road transport.However, there are two important limitations of the reportthat should be taken into account. First, the ongoing crisisremains a source of uncertainty. It has so far had limitedimpact on grain production and logistics, yet access tofinance has become more difficult and other impacts mightarise in the future. Second, there are two areas that thereport does not address: customs and ports. Both areimportant elements of logistics costs and deserve acomprehensive analysis in the future.
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